531257.BO WACC - Weighted Average Cost of Capital
The WACC of Pratiksha Chemicals Ltd (531257.BO) is 10.5%.
| Range | Selected | |
| Cost of equity | 10.2% - 11.8% | 11% |
| Tax rate | 12.7% - 19.9% | 16.3% |
| Cost of debt | 7.0% - 13.9% | 10.45% |
| WACC | 9.3% - 11.7% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.4 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 11.8% |
| Tax rate | 12.7% | 19.9% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 7.0% | 13.9% |
| After-tax WACC | 9.3% | 11.7% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531257.BO | Pratiksha Chemicals Ltd | 0.28 | 0.83 | 0.67 |
| 504731.BO | Indian Bright Steel Co Ltd | 0 | -0.32 | -0.32 |
| 517397.BO | Pan Electronics India Ltd | 1.29 | 0.16 | 0.07 |
| 538401.BO | Maestros Electronics & Telecommunications Systems Ltd | 0.07 | 0.13 | 0.12 |
| 538992.BO | SAR Auto Products Ltd | 0.02 | 0.08 | 0.07 |
| 540108.BO | Tiaan Consumer Ltd | 374.53 | 0.93 | 0 |
| 540823.BO | Vitesse Agro Ltd | 2.26 | 0.55 | 0.19 |
| BOHRA.NS | Bohra Industries Ltd | 10.29 | 1.14 | 0.12 |
| GFSTEELS.NS | Grand Foundry Ltd | 0.15 | 0.1 | 0.08 |
| TIRUPATIFL.NS | Tirupati Forge Ltd | 0.05 | 1 | 0.96 |
| Low | High | |
| Unlevered beta | 0.08 | 0.12 |
| Relevered beta | 0.1 | 0.15 |
| Adjusted relevered beta | 0.4 | 0.43 |
531257.BO's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 531257.BO:
cost_of_equity (11.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.